Tuesday, May 24, 2011

Here is Part 6 of the translation of the booklet Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, an explanatory document that has been published together with the final version of the Guidelines adopted by the Cuban Communist Party (PCC) Congress in April. Thanks to a fellow translator, who prefers to remain anonymous, for translating the guidelines on localities.

The format is as follows: number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Communist Party Congress, followed by the drafting commission's explanation for the change. You'll find it easiest to read on my blog where the amended guidelines are in bold.

Localities

35. The Provincial and Municipal Administrative Councils carry out state functions and will not directly intervene in enterprise management. (Maintained)

36. Norms will be established for the relationship between the state functions exercised in the management of economic sectors at the provincial and municipal level and those carried out by administrative agencies of the central state administration, clarifying the limits, relations, work regulations and performance methodologies to be applied.

Norms will be established for the relationship between the state functions exercised in the management of economic sectors at the provincial and municipal level and those carried out by administrative agencies of the central state administration, defining the parameters, relations, work regulations and performance methodologies to be applied. (36)

Replaces the term “clarifying the limits" with "defining the parameters" to improve the wording.

37. The development of local initiatives, especially those related to food production, will constitute a working strategy for municipal self-sufficiency. The principle of financial self-sustainability will be the essential element of this effort, which will be harmoniously coordinated with the objectives of the plan for the national economy.

The development of local initiatives, led by the Municipal Administrative Councils, especially those related to food production, is aimed at municipal self-sufficiency that promotes the development of mini-industries and service centres. The principle of financial self-sustainability will be the essential element, which will be harmoniously coordinated with the objectives of the plan for the national economy and those of the municipalities. Once established, local initiatives will be managed by the economic entities located within the municipality. (37)

The development of mini-industries and service centers was included (608 opinions across the country), as well as the negotiation of projects by economic entities (from 315 opinions in 15 provinces). It was added that these projects should be led by the Municipal Administrative Councils on the basis of the Congress debates.

38. In this effort the Municipal Administrative Councils will have a fundamental role in guiding projects. (Integrated with Guideline 37,315 opinions in 15 provinces)

Macroeconomic policies

General guidelines

39. Achieve better coordination between the objectives of the plan for the national economy and the design and reach of monetary and fiscal policies. (Maintained as Guideline 38)

40. Achieve external financial equilibrium starting from a favourable current account balance of payments, sustained by the behaviour of the real economy that can compensate for financial imbalances.

Achieve external financial equilibrium, starting with an appropriate correlation between incomes and expenditures in the nation's convertible currency in correspondence with the behaviour of the economy. (39)

Taking into consideration doubts about the meaning of "current account", and to specify the foundation upon which external financial equilibrium is based, 61 opinions registered in 7 provinces and the Isle of Youth.

41. Guarantee the maintenance of an appropriate relationship between accumulation and consumption and define the necessary rate of accumulation, taking into account the process of recapitalisation required by the economy. In addition, it is essential to establish a more effective relationship between consumption on the basis of incomes derived from work and the social consumption funds.

Guarantee an appropriate distribution of the national income between immediate consumption and accumulation. Also, establish a relation between consumption on the basis of personal incomes and the social consumption funds that stimulates labour productivity growth. (40)

The wording is improved to make it easier to understand, 52 opinions in 11 provinces. Additionally, the phrase incomes derived from work is replaced by "personal incomes" to include the totality of the latter.

Guarantee in the production of goods and services:

In the production of goods and services, the planning process must guarantee:

To specify that the following guidelines must be implemented through the planning process.

42. Labour productivity growth that exceeds the increase in average incomes for workers.

A relationship between labour productivity growth and average worker incomes that does not cause a deterioration in either the internal monetary equilibrium or the efficiency of the national economy. (41)

Reformulated to specify two basic conditions to take into account in the framing of this relationship, in response to 56 doubts registered in 12 provinces.

43. A sustained increase in economic efficiency that allows for a progressive reduction in state subsidies.

A sustained increase in efficiency as the basis for economic development that allows for a progressive reduction in state subsidies and that contributes to improving, as much as possible, the supply of essential goods and services to the population. (42)

To aid comprehension, efficiency as a necessary condition to improve the supply of goods and services is emphasised, in response to 46 opinions in 9 provinces.

44. An appropriate link between the expansion of social services and the dynamism of the sectors that produce goods and services that increase the material wealth of the country.

The necessary dynamism of the sectors that increase the economic wealth of the country to underpin the resources needed for the provision of social services. (43)

Improves the wording, underlining the importance of growth in the productive sectors for the sustainability of social services.

45. A relationship between the imported component of productive processes and the economy's capacity to generate incomes in convertible currency that is sustainable in the medium and long term.

An appropriate relationship between the imported component of national production and the capacity to generate incomes in convertible currency. (44)

Clarifies that this relationship must be appropriate, which is a more comprehensive concept that includes its sustainability over time.

Monday, May 23, 2011

Cuba's Granma newspaper reported on May 21 that as of the end of April, around 310,000 Cubans were registered as self-employed, some 222,000 of them having obtained licences for the first time in the period since October when restrictions on self-employment were relaxed and a new tax system introduced. Nearly 40,000 of these licenses have been issued for workers employed by small private businesses.

Curiously, in official discourse both the self-employed and those who employ others to work for them are considered cuentapropistas — "self-employed" — when in reality those who employ others are, in Marxist terms, petit-bourgeois. Small businesses must be profitable. Unlike cooperatives, in which the distribution of the earnings is decided by the members of the cooperative or by its elected and accountable management, in Cuba's emerging legal small business sector (as elsewhere in the world) the profits belong to the business owner.

As Karl Marx demonstrated in the 19th century, the source of capitalist profit, whatever the scale of the capitalist enterprise, is the exploitation of labour. A self-employed person's business activities must also generate net earnings otherwise they can't earn a living, but nobody can exploit themselves. Exploitation is an unequal social relation in which one person, or some people, exploit others. It's unclear why this important sociological and ideological distinction is being fudged in the official discourse. In practice the distinction is clear: those who employ others have certain legal obligations that the self-employed do not have, such as having to pay a payroll tax that rises steeply according to the number of employees — an indirect way of limiting the size of legal private businesses.

One possible reason for the lack of sociological and terminological clarity is that Cuba's socialist constitution states: "ARTICLE 14. In the Republic of Cuba rules the socialist system of economy based on the people’s socialist ownership of the fundamental means of production and on the abolition of the exploitation of man by man [my italics]."

The abolition of the exploitation of man by man is a noble objective. But the reality is that black-market businesses provide many of the services that the socialist state has proved incapable of providing. For example, if you want your toilet fixed you can call the local People's Power administration and ask them to send someone, which may take months or even years. Or you can hire a plumber operating in the shadows of the legal economy, in all likelihood a plumber employed by the state who does "a little bit extra" on the side. He visits that same evening and fixes the problem. He does a good job and charges the equivalent of a month's wages in convertible pesos ... and pays not one centavo in taxes.

The legalisation of existing small private businesses whose activities are legitimate and the expansion of this sector (as well as cooperatives and self-employment) with the state's encouragement and assistance faces up to this reality. The following paragraph of Article 14 states: "Also in effect is the principle of socialist distribution: 'from each according to his ability, to each according to his work.' The law stipulates the regulations which guarantee the effective fulfilment of this principle." In reality the socialist distribution principle is hardly "in effect" in Cuba today, as Raul Castro and others have pointed out on numerous occasions.

At the heart of the socialist renewal process now underway is the reassertion of this principle. It's undeniable that capitalist exploitation, whether by large or small private businesses, violates this principle. Yet in a dialectical twist, the expansion and consolidation of legal small private businesses, cooperatives and self-employment will allow the socialist distribution principle to be applied more rigorously across the economy as a whole by soaking up surplus workers in the state sector. This, in turn, will allow wages and salaries to recover their role as a means to allocate access to goods and services other than those, such as free health care and education, that are guaranteed to all citizens.

Article 14 upholds two principles only one of which is compatible with the epoch of transition from capitalism to communism: "To each according to their work". The other principle, "the abolition of the exploitation of man by man", is only realisable in a fully communist, global society in which social classes and the state have withered away. Little Cuba, blockaded and defiant, is light years away from this remote objective.

Even if the socialist state employed 100% of the Cuban workforce, an economic absurdity, "the abolition of the exploitation of man by man" could not be realised since Cuba is a socialist-oriented archipelago in a capitalist world. Cuban products and services must be sold in the capitalist world market. This means that Cuba's working people as a whole are exploited by the transnational corporations based in developed capitalist societies.

Sooner or later Cuba's socialist constitution will have to be brought into line with reality. In the meantime, actions speak louder than words. Cuba is moving towards a socialist-oriented society with a mixed economy in which socialist state enterprises continue to be the dominant property form. Social planning will prevail over the market, but there will be more scope for market mechanisms to mediate the complex horizontal relations among the non-state forms of ownership and management, and the relations between these and the dominant state sector.

Here is Part 5 of the translation of the booklet Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, an explanatory document that has been published together with the final version of the Guidelines adopted by the Cuban Communist Party (PCC) Congress in April. Thanks to a fellow translator, who prefers to remain anonymous, for translating the following guidelines on the budgetary sector.

The format is as follows: number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Communist Party Congress, followed by the drafting commission's explanation for the change. You'll find it easiest to read on my blog where the amended guidelines are in bold.

Budgetary system

30. Budgetary departments carry out state and government functions and the provision of health care and education services. They do not define entity objectives, but obligations and responsibilities.

The budgetary departments carry out state and government functions and the provision of health care, education and other services. They define missions, functions, obligations and responsibilities. (30)

It is clarified here that they can provide other services, according to 198 opinions in 15 provinces. The concept of “entity objectives” is replaced by “missions and functions.”

31. The number of budgetary departments will be reduced to the minimum number needed to guarantee the execution of assigned functions. The key criterion will be maximising savings in terms of personnel and state budget expenditure on material and financial resources.

The number of budgetary departments will be reduced to the minimum number needed to guarantee the execution of the assigned functions. The key criterion will be maximising savings in terms of state budget expenditure on material and financial resources, while guaranteeing an efficient and quality service. (31)

“Guaranteeing an efficient and quality service” was added since it related to 469 opinions nationwide and the discussion at the Congress.

32. Budgetary departments will not be created to carry out productive services or the production of goods. Budgetary departments that are able to finance their expenses with their revenues and generate surpluses will become self-financing units, without ceasing to carry out their assigned functions and responsibilities, or they will become enterprises.

Budgetary departments will not be created to carry out productive services or the production of goods. Budgetary departments that are able to finance their expenses with their revenues and generate surpluses will become self-financing units, without ceasing to carry out their assigned functions and responsibilities, or they will be able to adopt — with prior approval — the structures of enterprises. (32)

The wording is improved.

33. Budgetary departments that are only able to a cover part of their expenses with their revenues will be given approval for that part of their expenses that will be financed by the state budget.

Budgetary departments that are only able to cover part of their expenses with their revenues will be given approval for that part of their expenses that will be financed by the state budget. (33)

The wording is improved [in the Spanish text; the translation is identical].

34. A managerial system will be designed that will govern the organisational and economic operation and auditing of the budgetary departments, simplifying their accounting. (Maintained)

Thursday, May 19, 2011

Cooperatives seem poised to multiply, expand their range of activities and play a critical role in the new Cuban socialist-oriented economic model that is emerging. Cooperatives are nothing new in revolutionary Cuba, but with the exception of the urban agricultural sector they have been an almost exclusively rural phenomenon.

Though the scope of cooperative activity is not laid down in the Guidelines — it can only take shape organically through a process of experimentation adapted to local conditions — there is a clear intention to establish urban cooperatives in many small-scale production and service entities, as then Minister for Economy and Planning Marino Murillo explained to the National Assembly in December. Here, Cuba can learn from the Venezuelan experience as well as that of cooperatives in capitalist societies. Under capitalism cooperatives are destined to remain marginal. In Cuba's post-capitalist economy they have the potential to flourish. As Juventud Rebelde columnist Ricardo Ronquillo reminded Cubans in November, Lenin put it with characteristic succinctness: socialism is none other than "the regime of cultured cooperativists".

Here is Part 4 of my translation of the booklet Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, an explanatory document that has been published together with the final version of the Guidelines adopted by the Cuban Communist Party (PCC) Congress in April.

The format is as follows: number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Communist Party Congress, followed by the drafting commission's explanation for the change. You'll find it easiest to read on my blog where the amended guidelines are in bold.

Cooperatives

25. Are based on the free association of the workers who comprise it. These may be owners or lessees of means of production or may utilise them in permanent usufruct [i.e. lease them indefinitely from the socialist state rent-free, as in the leasing of state-owned farmland under Raul Castro's presidency — translator's note].

First-grade cooperatives are created as a socialist form of collective property in different sectors, constituting an economic organisation that is a legal entity with its own property. Cooperative members associate with the aim of producing goods or providing services that are useful to society, and cooperatives cover their expenses with their incomes. (25)

Clarifies and specifies the concept of first-grade cooperatives, 1,130 doubts across the country. Adds that the cooperative is a socialist form of collective property, 29 opinions in 9 provinces.

26. The General Regulations of Cooperatives will ensure that cooperative property cannot be sold, leased or rented to other cooperatives or non-state forms of production.

The legal framework for cooperatives must ensure that cooperatives, as social property, cannot be sold nor their ownership transferred to other cooperatives, non-state forms of management or to individuals. (26)

"General Regulations" is changed to "juridical norm" to allow greater flexibility in the elaboration of the necessary document.

27. Cooperatives maintain contractual relationships with other cooperatives, enterprises, budgeted entities and with other non-state forms, and sell [goods and services] directly to the population in accordance with their approved social purpose.

Cooperatives maintain contractual relationships with other cooperatives, enterprises, budgeted entities and with other non-state forms. After fulfilling their commitments to the state they may sell freely, without intermediaries, in accordance with their authorised economic activity. (27)

Includes the possibility of sales without intermediaries and improves the wording. Responds to 483 opinions in 14 provinces.

28. Cooperatives, on the basis of what is established in the General Regulations, define the incomes of the workers [i.e. cooperative members] and the distribution of the profits, and pay taxes and contributions according to what is established.

Cooperatives, on the basis of what is established in the corresponding juridical norms, determine the incomes of the workers and the distribution of the profits after the payment of the established taxes and contributions. (28)

Substitutes the word "define" for "determine" to adapt the wording to the content of what is necessary.

29. First-grade cooperatives may voluntarily agree to constitute second-grade cooperatives, as legal entities with their own property, with the objective of organising common processes (of production and services), purchases and sales with a view to achieving greater efficiency.

Second-grade cooperatives will be created, whose members are first-grade cooperatives, as legal entities with their own property that are formed for the purpose of organising complementary activities that are related or that add value to the products and services of their members (production, services and commercialisation), or to carry out joint purchases and sales with a view to achieving greater efficiency. (29)

Clarifies the concept of second-grade cooperatives, 993 doubts across the country.

Cuba's Granma newspaper reported on March 17 the decision of the Council of Ministers to allow the self-employed to hire workers in all 178 permitted categories of self-employment. Since October, when self-employment was broadened and a new tax system was introduced, legal small private businesses had been restricted to 83 of the 178 self-employment categories. "The Council of Ministers agreed to extend to all of the non-state sector activities the approval to hire employees and continue the process of easing the restrictions on self-employment," Granma reported.

Below I continue my translation of the booklet Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, an explanatory document that has been published together with the final version of the Guidelines adopted by the Cuban Communist Party Congress in April.

The format is as follows: number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Communist Party Congress, followed by the drafting commission's explanation for the change. You'll find it easiest to read on my blog where the amended guidelines are in bold. My translation of the explanatory notes for the first 10 guidelines, dealing with the general features of Cuba's economic management model, is here.

Enterprise sector

11. The powers and financial mechanisms used by [state] enterprises to manage, organise and carry out the production of goods and services will be defined.

The powers and financial mechanisms used by [state] enterprises to manage, organise and carry out the production of goods and services will be defined. The social objectives of enterprises will be made more flexible in order to maximise their potential. (13)

Includes making the social objectives more flexible, 880 opinions nationwide. Eliminates "organise and carry out", since these are included in "manage".

12. External entities cannot intervene in the internal finances of enterprises. This can only be done through the legally established procedures. (Maintained as guideline 14)

New guideline:

Enterprise Improvement will be integrated with the policies of the Economic Model in order to achieve more efficient and competitive enterprises. (15)

Added as a new guideline considering 146 opinions in 14 provinces.

[Enterprise Improvement (Perfeccionamiento Empresarial) was launched in enterprises run by Cuba's armed forces in the 1990s and is gradually being implemented in other state enterprises. A comprehensive modernisation programme, Enterprise Improvement grants more autonomy to state enterprises within the framework of the plan. This decentralisation allows more scope for worker participation in management — translator's note.]

13. Enterprises decide on and administer their working capital and investments up to the limit established in the plan and according to the regulations that will be established.

Enterprises decide on and administer their working capital and investments up to the limit established in the plan. (16)

Considering that the plan is the governing mechanism, "according to the regulations that will be established" is deleted.

14. Enterprise management oversight will be based principally on economic-financial mechanisms rather than administrative mechanisms, eliminating the current burden of administrative oversight of enterprises.

External oversight of the management of entities will be based principally on economic-financial mechanisms rather than administrative mechanisms, without excluding the latter, reducing the current burden of administrative oversight and making the compiling of performance data more rational. (11)

Includes this guideline under the Enterprise Sector heading. Broadens its content to include [budgeted] entities. Specifies that it deals with external oversight and the need to make data compilation more rational, 585 opinions in 15 provinces.

15. The increased responsibility and power of enterprises makes it necessary to strengthen their systems of internal control to achieve the hoped-for results in terms of the fulfilment of their plans and goals with efficiency, order, discipline and the strict observance of legality.

Their increased responsibility and power makes it necessary to demand the ethical conduct of the entities and their directors, as well as the strengthening of their systems of internal control to achieve the hoped-for results in terms of the fulfilment of their plans and goals with efficiency, order, discipline and the strict observance of legality. (12)

Includes this guideline under the Enterprise Sector heading. Broadens its content and adds the ethical conduct of the directors of entities and all the activities of the entities, 89 opinions in 14 provinces and the Congress debates.

16. State enterprises with sustained financial losses, insufficient working capital, that cannot honour their contractual obligations through their activities or that fail financial audits will be summonsed to a process of liquidation, complying with what will be established in this regard.

State enterprises or cooperatives with sustained financial losses, insufficient working capital, that cannot honour their contractual obligations through their activities or that fail financial audits will be summonsed to a process of liquidation or may be transformed into other forms of non-state management, complying with what will be established in this regard. (17)

Incorporates into the liquidation process the possibility of converting enterprises and cooperatives into other forms of non-state management [of social property such as state-owned farmland or commercial premises — translator's note], 126 opinions in 12 provinces and the Isle of Youth.

17. Enterprises will not, as a norm, receive budgetary financing for the production of goods and services.

Subsidies for loss-making enterprises will be eliminated and, as a norm, enterprises will not receive budgetary financing for the production of goods and services. (18)

The Congress agreed to incorporate at the beginning of this guideline the first part of draft guideline No. 21, which read: "Subsidies for loss-making enterprises will be eliminated".

18. Enterprises, from their earnings after payment of taxes and complying with other commitments to the state, will be able to create funds for development, investments and incentivising the workforce, after having satisfied the established requirements.

Enterprises, from their after-tax earnings, complying with their commitments to the state and with the other established requirements, will be able to create funds for development, investments and incentivising the workforce. (19)

Improves the wording.

19. The incomes of the workers in state enterprises will be linked to the final results obtained.

The incomes of the workers and directors of state enterprises and the non-state forms of management [of social property] will be linked to the results obtained. (20)

Broadens the content of the Guideline, adding all forms of non-state management and "the directors" to clarify that all incomes are linked to results, 98 opinions throughout the country. The word "final" is eliminated to allow for cases in which piecework payment is applied, as proposed during the Congress debates.

20. Enterprises will pay a centrally-determined municipal tax to the Municipal Administrative Councils in which they operate their establishments to contribute to local development.

Enterprises and cooperatives will pay a centrally-determined municipal tax to the Municipal Administrative Councils in which they operate their establishments to contribute to local development, setting the tax rate according to the particularities of each municipality. (21)

Incorporates cooperatives in the payment of local taxes and"the particularities of each municipality", 267 opinions in 14 provinces.

21. Subsidies for losses will be eliminated; enterprises will set aside part of their after-tax earnings to contribute to a fund, established by the superior enterprise management entity, to compensate for financial imbalances.

Enterprises will set aside part of their after-tax earnings to contribute to a fund, established by the superior enterprise management entity, for compensation to cover for financial imbalances. (22)

The word "cover" is added as proposed by a National Assembly deputy. The Congress debates agreed to transfer the first part of the draft Guideline ["Subsidies for losses will be eliminated"] to the current Guideline 18.

22. Enterprises will be free to approve their own payrolls [i.e. number of employees].

Enterprises will be free to approve their own payrolls, complying with the indicators established in the plan, which will contribute to preventing unnecessary increases in payrolls. (23)

To prevent a return to inflated payrolls, "complying with the indicators established in the plan" is added, 922 opinions throughout the country.

23. Within the framework of pricing policies set by the competent authority, enterprises will approve with flexibility and transparency the prices of the products and services they provide, and may lower prices when they consider it necessary. (Integrated with guideline 68)

To avoid repetition, this guideline is integrated into guideline 68, which establishes the policy for the centralisation or otherwise of prices.

24. Research centres that serve production and services must be incorporated into the enterprises or superior enterprise management entities in all cases where possible, in such a way that their research is effectively linked to the corresponding production.

Wednesday, May 11, 2011

Here is my translation of the first section of the bookletInformation on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution, that discusses changes to the Guidelines (numbered 1 to 10) regarding the general features of Cuba's economic management model. Please note that this is an unofficial translation.

The format throughout follows that in the first Guideline below: the number and text of the draft guideline, followed by the text and number of the corresponding guideline approved by the Sixth PCC Congress, followed by the drafting commission's explanation of the change.

1. Economic management model

General Guidelines

Original number and text:

01. The socialist planning system will continue to be the principal means to direct the national economy, and must be transformed methodologically and organisationally to give space to the new forms of management and direction of the national economy.

Approved text and number:

The socialist planning system will continue to be the principal means to direct the national economy, and must be transformed methodologically, organisationally and in terms of oversight. Planning will take the market into account, influence it and consider its characteristics.(1)

Reason for change:

In relation to planning, the role that the market will have is clarified, 52 opinions in 13 provinces. "Oversight" was added by the Congress debate.

02. The management model must recognise and stimulate, as well as the socialist state enterprise which is the principal form of the national economy, mixed capital enterprises, cooperatives, lessors of state-owned farmland, lessees of state-owned premises, self-employed workers and other forms that may contribute to increasing the efficiency of social labour.

The management model recognises and promotes, as well as the socialist state enterprise which is the principal form of the national economy, the legally sanctioned modalities of foreign investment (mixed enterprises, international contractual arrangements, among others), cooperatives, peasant farmers, lessees of state-owned farmland, lessees of state-owned premises, self-employed workers and other forms all of which, together, must contribute to boosting efficiency.(2)

Includes the peasant farmers, addressing 50 opinions in 10 provinces. Foreign investment modalities specified in the law are included. The text is improved and the need for all forms to complement each other in boosting economic efficiency is emphasised.

03. In the new forms of non-state management the concentration of property [ownership] by juridical or natural persons shall not be permitted.

In the forms of non-state management the concentration of property [ownership] by juridical or natural persons shall not be permitted.(3)

The word "new" is eliminated, given that there are already non-state forms of management [eg. agricultural cooperatives that farm state-owned land — translator's note]

04. The structural, functional, organisational and economic changes to the enterprise system, the budgeted entities and the state administration in general will be carried out in a programmed way, with order and discipline, on the basis of the approved policy, which necessitates a training process in all of the structures that will facilitate the implementation of these changes.

The structural, functional, organisational and economic changes to the enterprise system, the budgeted entities and the state administration in general will be carried out in a programmed way, with order and discipline, on the basis of the approved policy, informing the workers and listening to their opinions, which necessitates a training process in all of the structures that will facilitate the implementation of these changes.(4)

Incorporates the form of worker participation, 790 opinions in 15 provinces.

05. Planning will encompass not only the state enterprise system and the Cuban mixed capital enterprises, but will also regulate the non-state forms to be developed, which implies a transformation of the planning system towards new methods of elaboration of the plan and of state control over the economy.

Planning will encompass the state enterprise system, the budgeted entities and the international economic associations and will regulate other forms of non-state management to be developed, and will be more objective at every level. The new planning methods will change the forms of control over the economy. Planning at the municipality level will take these transformations into account.(05)

Incorporates "the budgeted entities" as a result of the Congress debate, given that planning already encompasses this sector. Substitutes "the mixed capital enterprises" for "international economic associations" as this the most appropriate term. Planning in the non-state sector is added, 346 opinions throughout the country; and planning at the municipal level, 203 opinions in 15 provinces.

06. The separation of state and enterprise functions will take place through a gradual and ordered process, in which the fulfilment of the norms to be established is essential to achieving the proposed aims.

The separation of state and enterprise functions will take place through a gradual and ordered process, in which the definition of the corresponding norms is essential to achieving the proposed aims.(6)

As proposed by the Congress debate, the term "fulfilment" is changed to "definition", which clarifies what is intended.

It will be necessary to achieve a state enterprise system made up of strong and well-organised firms, and to create new superior organisations of enterprise coordination. General Regulations for these organisations will be elaborated.

Achieve a state enterprise system made up of efficient, well organised and effective firms. New superior organisations of enterprise coordination will be created. Cooperation between enterprises will be developed to ensure greater efficiency and quality. The corresponding legal norms to regulate these entities will be drawn up.(7)

Adds the idea of developing cooperation between enterprises and the necessity to boost efficiency and quality, 762 opinions throughout the country. "General Regulations" is substituted by "legal norms" to give greater flexibility to the elaboration of the necessary document. The text is improved and made more precise, 181 opinions throughout the country and the Congress analysis.

08. The increase in the powers of the enterprises will be accompanied by their increased responsibility for control over the material and financial resources they manage.

The increase in the powers of entity management will be accompanied by their increased responsibility for efficiency, effectiveness and control over the employment of personnel and the material and financial resources they manage, together with the necessity to demand accountability of those enterprise directors whose decisions, actions or omissions harm the economy.(8)

The content of the guideline is broadened by substituting "enterprises" for "entities" and it is clarified that the powers are those of the managers of these entities. The wording is improved and the accountability of the directors is added, 379 opinions in 15 provinces. "Decisions, actions or omissions harm the economy" is added on the basis of the Congress analysis.

09. Supplies markets will be established that sell at wholesale prices, without subsidies, for the enterprise and budgeted sectors, cooperatives, lessees of state-owned establishments, lessees of state-owned farmland and self-employed workers.

Supplies markets will be established that sell at wholesale prices and that provide hiring services for machinery and equipment, without subsidies, to the enterprise system, budgeted entities and the non-state forms of management.(9)

Incorporates the hiring of machinery and equipment, 197 opinions in 15 provinces, and simplifies the wording of the non-state forms of management .

10. The fulfilment of contracts depends on the quality of the negotiation, elaboration, signing and auditing procedures for contracts between economic entities, as an essential instrument of control over their performance.

The economic relations between enterprises, budgeted entities and the non-state forms of management will be mediated through economic contracts, fulfilment of which depends on the quality of the negotiation, elaboration, signing, execution and auditing procedures as an essential instrument of economic management.(10)

Broadens that related to the drawing up and fulfilment of contracts, 1,171 opinions in 15 provinces.

Information on the results of the Debate on the Economic and Social Policy Guidelines for the Party and the Revolution

Translation: Marce Cameron

Introduction

With the aim of providing more information, this document summarises the analysis made of every Guideline taking into consideration the opinions of the population and other sources, such as consultations with the corresponding entities and the final results of the analysis carried out during the Cuban Communist Party (PCC) Sixth Congress. It has been organised into three columns as follows:

1.The number and wording of the original Guideline in the draft document published on November 9, 2010 and discussed by the population;

2. The wording approved by the Sixth Congress and the updated paragraph number of the Guideline;

3. The basic motivation for the changes to those guidelines that were modified, briefly noting the source of the proposals which led to the changes.

Where the sources of the changes are not noted, the changes were proposed during the preparatory process for the Congress or during the Congress itself by the working groups and Commissions created for this purpose.

Where the original wording was not changed, the word “maintained” appears in the second column and the updated paragraph number is noted. In such guidelines there is no motivation for changes in the third column.

When one guideline has been incorporated into another, the word “incorporated” appears in the second column along with the paragraph number of the Guideline into which it has been incorporated.

Process

The Economic and Social Policy Guidelines for the Party and the Revolution presented here are the result of a three-stage discussion process:

Discussion of the Draft Guidelines by the people as a whole from December 2010 to February 2011. This stage included the discussion in the Sixth Ordinary Period of Sessions of the Seventh Legislature of the National Assembly of People’s Power from December 15-18, 2010.

Discussion in every province by the delegates and guests invited to the Sixth PCC Congress from April 8-10, 2011. Prior to this they were discussed, on March 19-20, in a joint meeting of the PCC Political Bureau and the Executive Committee of the Council of Ministers, with the participation of the secretariat of the PCC Central Committee, the leadership of the Cuban Trade Union Confederation and other mass organisations and the Union of Young Communists.

Discussion by the Commissions during the Sixth PCC Congress, April 17-18.

First stage: Discussion of the Draft Guidelines by the people as a whole

The initial 291 guidelines were analysed in 163,079 meetings with 8,913,838 participants; this figure includes those that attended both the meetings of their base committees, such as in their work or study centres, and their neighbourhood metings. A total of 3,019,471 interventions were made which are grouped into 781,644 opinions. More than 395,000 opinions were accepted or included in the reformulation of the Guidelines. Some 210,000 related to the implementation of the Guidelines; more than 65,000 expressed doubts or concerns that will be clarified through the media; a further 62,000 opinions referred to themes that were already taken up in the Guidelines; and around 50,000 were not accepted or will continue to be studied in subsequent stages.

The opinions and proposals put forward by the people were analysed in detail, with the following results:

Totals

Draft guidelines: 291

Unchanged: 94 (32%)

Modified or incorporated with others: 197 (68%)

Modified: 181 (62%)

Incorporated with others: 16 (6%)

New guidelines: 36

Total number of guidelines resulting from this stage: 311

Second stage: Discussion in the provinces by Congress delegates and guests

The analysis of the first stage and the resulting 311 guidelines were sent to each province to be discussed by the delegates and guests invited to the Sixth PCC Congress. Organised into five commissions, 978 delegates and 216 guests participated in these discussions.

In the analysis carried out by the provincial delegations the reformulations, changes and additions made to the 291 draft guidelines as a result of the proposals made by the population in the first stage were assessed as positive. The PCC provincial plenary sessions approved the presentation to the Congress of 257 proposals regarding 146 Guidelines (57% of the total).

Third stage: Discussion by the Commissions during the Congress

In the five Commissions, 986 delegates and 97 invited guests participated and 86 guidelines, 28% of the total, were modified. Two additional guidelines were also approved, creating a new total of 313 guidelines. The proposals made in the cCommissions were consistent with the results of the popular consultation and reaffirmed the political content of the Guidelines.

Conclusions

As can be appreciated, the Guidelines submitted for approval by the plenary session of the Congress were the object of profound analysis in three stages beginning in December 2010, and were modified on the basis of the 781,644 proposals put forward during the first stage, as well as those added by the provincial PCC delegations and the Congress commissions. This demonstrates that the Economic and Social Policy Guidelines are an expression of the popular will embodied in the policies of the PCC, the state and the government of the Republic of Cuba.

About this blog

This blog has two aims. One is to open a window to the English-speaking world on the debates and changes taking place in Cuba. What makes this blog special is that I'll be regularly posting original translations of selected documents, commentaries and letters to the editor published in Cuba's revolutionary press, and inviting readers to comment on them. The other is to provide a space for discussion and debate among supporters, however critical, of the Cuban Revolution to sharpen our understanding and, hopefully, to inspire our ongoing solidarity. Read more...

Members of the Australian Youth-Student Revolutionary Tour of Venezuela and Cuba, July 2010. With Liudmila Alamo (second from right), secretary of Cuba's Union of Young Communists (UJC), Havana, Cuba. Photo: Maria Voukelatos